Gold Prices In India Ease On Profit Booking

On Monday, gold futures on MCX were trading 0.5 percent lower at Rs 43,366 per 10 grams after opening at Rs 43,450 on likely profit booking and selling for cash amid the lockdown. On Friday the yellow metal closed at Rs 43,571/10 grams.

In the international market, spot gold was up 0.3 percent at $1,621.85 per ounce as the US dollar hovered near a two-week low. A rise in the number of COVID-19 cases and deaths have caused tightening lockdowns and raised fears of economic damage, lifting the demand for the safe-haven metal.

While the American dollar's weakening makes the metal cheaper in non-dollar currencies, a weaker rupee curbed the decline in gold prices in India.

On Monday, the rupee opened 33 paise lower at 75.18 per dollar against the previous close of 74.85. The dollar has been holding close to its lowest since 17 March.

According to a Reuters report, physical gold dealers had struggled to meet surging safe-haven demand last week, especially in Singapore, as the outbreak disrupted global supply chains.

Last week IMF warned that the coronavirus pandemic has already driven the global economy into recession and countries must respond with "very massive" spending to avoid a cascade of bankruptcies and emerging market debt defaults.

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